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TMI Blog2005 (7) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated 29-4-1997 of the Commissioner of Central Excise by which he has :- (a) confirmed duty demand of Rs. 2,64,849.68 on illicit clearances of 9387 rigid PVC pipes, (b) confirmed duty demand of Rs. 7,20,502/- on 60,300 kgs of PVC resins and 3,050 kgs calcium carbonate (inputs/raw materials) found short during search; (c) confirmed duty demand of Rs. 1,27,643.68 on illicit clearance of PVC pipes as per Annexure C to the show cause notice; (d) confirmed demand of Rs. 19,60,001.93 on illicit clearance of PVC pipes as per Annexure D to the show cause notice; (e) confiscated seized quantity of 2,094 rigid PVC pipes with option to redeem them on payment of a fine of Rs. 1,10,000/-. (f) confiscated seized qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) imposed penalty of Rs. 1 lakh under Rule 209A of the Central Excise Rules on its General Manger. 4. We have heard both sides and record our findings as under. 5. Demand on finished goods found short on stock verification is sustainable in view of the admission of such shortage by Shri Nambiar. The contention of M/s. Plastotex (Bombay) Pvt. Ltd. that stock of some finished goods was stored in the adjoining compound of M/s. Omniplast (Bombay) Pvt. Ltd. and vice versa and that shortage found in one premises was off-set by excess stock found in the other premises is not acceptable for the reason that in the case of M/s. Plastotex, the comparative chart furnished by them only covered six varieties of pipes and out of that, stock talli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... day admitting the lapse. This demand is based on three booklets 41, 42 and 43 (internal records) together with statements of the General Manager. The Commissioner has dealt with the entries in these booklets and found that they show production of PVC pipes by the appellants during the period in dispute. Annexure C has been prepared on the basis not only of these booklets but also on the basis of production reports containing file No. 823 seized from the factory or the appellants. The booklets contain details of date-wise and shift-wise production of different sizes of PVC pipes of ISI specification. These booklets also contain details such as rejection and despatch record. The submission of the appellants that the statement of Shri Nambiar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to have been cleared illicitly, does not advance their case for the reason that not only has the Commissioner relied upon the admission of the General Manager regarding illicit production and clearance but also for the reason that details of date-wise and shift-wise production are contained in the booklets which have been relied upon by the Commissioner for coming to the conclusion that there was clandestine manufacture and clearance of PVC pipes. This feature distinguishes the case law relied upon by the learned counsel for the appellants. The further argument that, in any event, the demand is to be reduced for the reason that the registers relied upon by the department contained details of production for April 1994 to November 1994 whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able in view of our upholding the duty demands both on shortage of inputs as well as final products and the illicit clearance of final products. However, in the totality of the facts and circumstances of the case, we reduce the penalty on M/s. Plastotex (Bombay) Pvt. Ltd. to Rs. 3,00,000/- (Rupees three lakhs) and the penalty on M/s. Omniplast (Bombay) Pvt. Ltd. to Rs. 4,00,000/- (Rupees four lakhs). As regards penalty on the General Manager, Shri A.C.B. Nambiar, while holding that he is liable to penalty, we reduce the penalty to Rs. 10,000/- (Rupees ten thousand) in each case. 10. In the result, we uphold the duty demands in both cases, set aside confiscation of goods (both raw materials as well as finished products) and of land/plant/b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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